Matthew plans to leave his life insurance and his home to his second wife, Kate, and his RRSPs to his married adult children from his first marriage. When Matthew dies:

His children can roll Matthew's RRSP proceeds into their own RRSPs

His children must declare the RRSPs as income on their tax returns

The RRSP proceeds can be declared as income of the estate

The RRSP proceeds will be included as income on his terminal tax return